“There’s a demystifying process that needs to happen, and from a regulatory perspective, there are some unknowns, ” said Witness Yi, Treasury Services Manager for Chase. “But there are clear applications for blockchain in commercial real estate, with potential for increased efficiency and transparency as these solutions develop. ” Blockchain, widely recognized as the technology behind cryptocurrency, is a versatile digital ledger system that stores and shares data across a network of computers. Data are organized into “blocks, ” such as transaction records, which are added sequentially to the “chain” using secure methods to prevent tampering or deletion by network participants. Each node holds a copy of the ledger, and updates are instantly synchronized, ensuring all users have access to the same unaltered information. Though blockchain technology and its regulatory framework are still evolving, commercial real estate is beginning to tap into its potential to boost efficiency and transparency through: 1. Smart contracts These are digital agreements on the blockchain that execute automatically when certain conditions are met. For example, a smart lease might automatically return a renter’s security deposit after a successful move-out inspection. Similarly, smart contracts could streamline commercial property sales by transferring title and payment upon contract execution. Yi notes, “If smart contracts help investors automate compliance and remove intermediaries, this could reduce costs and speed up transactions. While not widely used yet by clients, this could grow in the future. ” 2. Programmable payments Blockchain systems—including J. P.

Morgan’s Kinexys—enable rapid, complex transactions, settling payments in minutes rather than days, even across borders. This reduces uncertainties associated with payment timing. Furthermore, blockchain allows payments to be programmed to execute automatically upon predefined triggers, such as transferring funds exceeding a threshold. Yi explains, “Other payment methods allow automated payments but not with blockchain’s level of detail. We’re investing in this technology to innovate further. ” 3. Tokenized assets Tokenization converts ownership rights of physical or digital assets into blockchain-based “tokens. ” For instance, tokenizing a multifamily property portfolio means investors can buy tokens representing shares; the tokens can be resold, and smart contracts can automate income distribution to token holders. Yi highlights, “Since real estate often requires high upfront capital, tokenization or fractional ownership could make it accessible to a broader range of investors. ” Adopting blockchain requires careful assessment of costs, system integration, regulatory considerations, and technical skills. For guidance, consult your banker or payments and liquidity team. Yi advises clients to actively inquire about the industry's future, explore technological developments, and engage with learning communities of investors and professionals across industries to enhance technology fluency and collaboration.